HONG KONG: Hong Kong's benchmark Hang Seng Index ended down 1.76 percent or 380.13 points at 21,240.06 yesterday.

Turnover fell to HK$61.01 billion ($7.9 billion), from Monday's HK$65.12 billion.

"The market is retreating," said Jackson Wong, investment manager at Tanrich Securities, adding, "There is more downside at this point because we seem to have run out of major factors to prop up the market."

Some investors were also waiting for the outcome of the US Federal Reserve meeting and US October jobs data later this week, before making more bets in the market, Wong said.

"The market needs more data to validate expectations that the global economy is recovering quicker," he added.

Index heavyweight HSBC Holdings erased earlier gains to close down 0.75 percent. The lender was up 0.23 percent at midday on news of plans to boost its China presence by about 20 percent next year.

China Construction Bank slipped 2.36 percent and Bank of China slid 2.65 percent.

Hong Kong property developers extended losses on concern a government move to curb fast-rising property prices may squeeze earnings. Sino Land fell 4.08 percent and Sun Hung Kai Property was down 3.57 percent.

The China Enterprise Index of top locally listed mainland Chinese stocks was down 1.89 percent at 12,500.64.

Shimao Property Holdings fell 3.81 percent and China Overseas Land shed 3.41 percent.

Fitch Ratings said the mainland's red-hot property market was a concern for its sovereign credit rating because of the threat of worsening asset quality in the banking system.

Against the trend, Swire Pacific ended up 1.1 percent, but less than its 3.21 percent gain at midday.

DVN (Holdings) was up 1.75 percent, less than its 10.53 percent gain at midday.

China Daily/Reuters

(HK Edition 11/04/2009 page4)